Determining Your Payment

When you purchase a property and take on a mortgage, you will need to make regular payments on it until the loan is paid off. There are four things that will affect the amount of your mortgage payment:

Mortgage Amount - Your mortgage amount is your home purchase price minus your down payment. A more expensive home or smaller down payment means a larger mortgage amount and, therefore, a larger payment. In Canada, if you make a down payment of less than 20%, you will also have to pay CMHC insurance, which is added to your total mortgage amount.

Mortgage Rate - The higher the interest rate, the higher your mortgage payment will be. Click here to find the best mortgage rates in your province.

Amortization Period - The longer the amortization period, the lower your mortgage payment will be. However, a longer amortization period will cause you to pay more interest over the life of the mortgage.

Payment Frequency - The payment frequency you choose affects how much each payment will be and how many payments you will make in one year.

Determine Your Monthly Mortgage Payment?

Mortgage Payment Frequency Options

Your mortgage payment amount and how often you make payments depends on the mortgage payment frequency
option you choose. For an introduction on the different mortgage payment frequency options in Canada, watch the video below.

Here is a summary of the different mortgage payment frequencies:

Amont paid

Payment

Number of payments per year

Monthly

Monthly mortgage payment

Once per month

12

Bi-Weekly

Monthly mortgage payment x 12 / 2

Every two weeks

26

Accelerated bi-weekly

Monthly mortgage payment / 2

Every two weeks

26

Weekly

Monthly mortgage payment x 12 /52

Every week

52

Accelerated weekly

Monthly mortgage payment / 4

Every week

52

What is a monthly mortgage payment

A monthly mortgage payment is when your mortgage payment is withdrawn from your bank account on the same day of every month (i.e. on the 1st). With a monthly mortgage payment, you make 12 payments per year.

What is a bi-weekly mortgage payment?

A bi-weekly mortgage payment is when your mortgage payment is withdrawn from your account every other week, totaling 26 payments per year. To determine the bi-weekly mortgage payment amount, your monthly mortgage payment is multiplied by 12 months then divided by the 26 pay periods in a year. Many homebuyers choose a bi-weekly mortgage payment because it coincides with their bi-weekly pay period.

What is an accelerated bi-weekly mortgage payment?

An accelerated bi-weekly mortgage payment is also withdrawn from your bank account every other week, but the calculation used to determine the amount you pay is different from the bi-weekly mortgage payment. To determine the accelerated bi-weekly mortgage payment amount, your monthly mortgage payment is simply divided by 2. You still make 26 payments per year but the amount is slightly more than a regular bi-weekly mortgage payment.

What is a weekly mortgage payment?

A weekly mortgage payment is withdrawn from your account every week, totaling 52 payments per year. To determine the weekly mortgage payment amount, your monthly mortgage payment is multiplied by 12 months then divided by the 52 weeks in a year.

What is an accelerated weekly mortgage payment?

An accelerated weekly payment is also withdrawn from your bank account every week. To determine the accelerated weekly mortgage payment amount, your monthly mortgage payment is divided by 4. You still make 52 payments per year but the amount is slightly more than a regular weekly mortgage payment.